DAIRY PRODUCE.

Waikato Times, Volume 109, Issue 18359, 19 June 1931, Page 3

DAIRY PRODUCE.

THE LONDON MARKET. CONDITIONS IN MARCH. THE PRICE DECLINE. Messrs Samuel Page and Son, of London, write In their report dated April 20 that it is, of course, common knowledge that although the value of lie tonnage of many of the imports nto the United Kingdom for a long ime past has shown a marked increase he total value, owing to the calamitjus fall In prices, has considerably ‘decreased. This contradiction is very .loticeable with regard to foodstuffs with the sale of which we are particularly concerned, and we think the following statistics in this connection will prove- of interest. The total imports for the first three months of this year in relation to tonnage and value are as follows:

From the above figures, indicating a considerable Increase in supplies, It is not surprising that values should have fallen somewhat, but not to the great extent that has actually occurred; the severity of the drop is, as we have pointed, out in previous reports, due to the world-wide deflation. Near Future Prospects. One striking feature of the butter position is that, despite the fact that deliveries from store keep well up with arrivals, values have continued to decline. Apart of the explanation lies, we think, in forward sales, a large proportion of recent arrivals of both Australian and New Zealand having been bought on 0.1. f. or f.o.b. terms. This quantity not being purchased on the open market, accentuated an already slow demand; and while it may be true, that no more butter would have been cleared if buyers had filled their requirements on the spot instead of from arrivals bought “forward,” the market has suffered from the lack of stimulus that spot operations give it; therefore we think that the present low level is to some extent attributable to forward selling. Recent arrivals from Australasia were originally sold at from 114 s to 119 s c.i.f., and some buyers have not hesitated to cut their loss to the tune of 10s or 12s per cwt, while many have added to an already depressing situation by their efforts to get rid of their commitments; and although the first-hand sales may have benefited individual factories, such benefit could only be temporary at best 1 , and certainly not good for the trade as a whole. The chief tactor, however, in the declining market that has characterised the past four weeks is the general depression in commerce and industry This has led to restricted buying of all kinds of commodities, including food products, and it has also stopped enterprise with regard to the future —that is to say, buyers instead of taking goods freely, have limited their purchases to the smallest extent possible, their operations being of a hand-to-mouth character, but even with this lack of activity there has yet been sufficient demand to keep shipments of butter well sold up—stocks in cold storage during the fortnight ended April 4 were reduced 39,500 boxes, practically as much as was delivered during the corersponding period of last year. It has however been necessary to reduce prices of

Australian and New Zealand In view of the largo arrivals in order to prevent accumulations, values of these two descriptions being about 10s lower than a month ago, while Danish at the end of last week was 32 krone lower 'than four weeks earlier. But the market generally now appears to have steadied and the healthy aspeot of the situation Is the fact that sales have kept pace with supplies, so that should an improved demand set in there will not be oold stored goods to hinder sellers obtaining more money. Cheoso Revival Hoped For. The cheese market is affected by the general depression, without having the negative advantage enjoyed by butter of having shipments well sold up. During the past four weeks arrivals of New Zealand have overtaken demand, and with a poor Inquiry values have gradually declined, today being about 7s lower than they were at the date of our last report, the present price of white unfortunately establishing a new low record at 48s to 495. The courso of the market must be a great disappointment to shippers, as it is to buyers and sellers here who are jointly at a loss to account for the great depression in the trade. The majority of buyers have believed in the position sufficiently to follow prices down from 56s to 50s, only to find that, as their inquiry has not expanded, they are now carrying more cheese than is advisable, consequently even hand-to-mouth buying has become greatly restricted. Other cheap foods and bad weather have, of course, been right against any expansion of cheese consumption, while stocks and arrivals are very large; nevertheless it is not perhaps too much to hope that the market is reaching a point at which a revival of trade may be hoped for. Canadian prices are lower, in sympathy with those of New Zealand and Australian, but the former description still retains its premium. This is not surprising when it is noted that the importation from New Zealand during the past 15 months totalled 2,526,897 cwt, as against only 6Sl,4oicwt from Canada, and during the last three months alone over 665,000 cwt of New Zealand have been landed but only 3279 cwt of Canadian.

Button. Cwt. Jan./Mar., 1931 1,835,113 „ 1930 .. 1,733,586 Increase 101,527 £ Jan. Mar., 1930 .. 13,578,005 „ 1931 .. 11,188,467 Decrease £2,3S9,53S Cheese. Cwt. Jan./Mar., 1930 . 805,034 „ 1931 .. 788,527 Decrease 16,507 £ Jan./Mar., 1930 .. . 0,505,352 „ 1931 .. 2,344,672 Decrease £1,160,680 Bacon. Cwt. Jan./Mar., 1931 2,574,312 „ 1930 .. 2,081,717 Increase 492,595 £ Jan./Mar., 1930 .. 10,850,935 „ 1931 7,852,710 Decrease 2,998,225